If the peace agreement holds, the conflict between the US and Iran may soon be over, but it could take months if not years before the global economy returns to its previous course.
As the Iran war and current energy crisis have again exposed the global economy's dependence on oil and gas, some economists say it is time to accelerate the transition away from fossil fuels, and to reduce dependence on volatile energy markets.
In opening remarks at this year's climate talks in the German city of Bonn, UN climate chief Simon Stiell said the war in the Middle East was not only responsible for "immense human suffering" but had sparked "a fossil fuel cost crisis that's strangling economies everywhere."
He said it had now become "crystal clear," that maintaining dependence on fossil fuels meant continuing to import inflation and economic instability.In the wake of the war in Iran, the issue of energy security has taken center stage worldwide. It is not yet clear whether this will lead to more investment in renewable energy.Image: US Central Command/AFP
The Bonn negotiations have been ongoing for the past two weeks with the aim of preparing the agenda for the 2026 COP climate conference, to be held in Turkey in November.
